Full Steam Ahead – Recent Developments in U.S. Hydrogen Investments, Incentives and Policies: Recent Legislative and Executive Action in the United States, Including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, Could Spur Growth of Clean Hydrogen as a Commercially Viable Way to Decarbonize the U.S. Economy.Sullivan & Cromwell LLP - November 22, 2022
The United States is launching ambitious policy measures and programs, including substantial tax incentives and loan programs, aimed at supporting the growth of a cost competitive clean hydrogen industry. The Biden-Harris administration has identified zero or low carbon hydrogen as a key element of its stategy for reaching net zero U.S. greenhouse gas emissions by no later than 2050 and 100% carbon-free electricity by 2035. However, converting industrial operations and transportation systems to hydrogen is costly, and public sector support is crucial to enable clean hydrogen producers to design and and construct the infrastructure to compete with fossil fuel alternatives and other clean fuel resources. The memorandum discusses the new subsidies, tax credits and requirements for coordinated federal policy on hydrogen intended to jumpstart an at-scale U.S. clean hydrogen industry contained in the U.S.’s Inflation Reduction Act and Infrastructure Investment and Jobs Act, more commonly known as the Bipartisan Infrastructure Law.
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